Value Creation for Nestlé
Nestlé wanted us to solve address two needs. Firstly, how to engrain a common financial language across the business, in all countries and at all levels, so that meaningful decisions could be made and acted upon with consistency. Secondly, how to enable each employee to clearly understand how their decisions impact Shareholder Value and how each could contribute more value in the light of this understanding.
We built a simulation that truly reflects the reality of Nestlé’s business, both for classroom and virtual delivery. Called ‘Value Creation’, the simulation reflects the relationships between sales volume, price, cost of goods, brand support, research and the capital investment unique to their business. Specific context was created by choosing three product categories: coffee, chocolate and ice cream. As Nestlé’s managers participate in the experience, they can immediately see the commercial reality of their actions, as if it were really happening.
Central to the solution was Nestlé taking ownership of the simulation themselves. We established a highly effective train-the-trainer program, managed and maintained by Nestlé themselves, which allowed Nestlé’s own trainers around the world to deliver the simulation in their own regions, and in their own languages, without the need for PBS involvement.
More than 2,000 Nestlé managers go through the programme each year, and Nestlé people now speak the same language and use the same terminology, no matter where in the world they work.
Over the past twenty years, we have been commissioned to build, customise and deliver six further programmes for Nestlé and these are embedded throughout their training centres to enable ongoing people development in categories such as decision making and leadership.
To date, well over 200 Nestlé employees and associates have been successfully trained to deliver Value Creation in a process managed by Nestlé themselves.
Dominik Gerber, Head of Finance & Control Training, Nestlé writes:
"Nestlé works with PBS to make important learning fun – which increases learning impact and participant motivation. Value Creation has run successfully for almost 25 years in almost every country Nestlé operates in.
Whilst we still like to deliver the face-to-face game where possible, the digital version saves logistic costs and allows us to combine participants from different locations which fosters networking. Managers who participate in this programme have a much greater understanding of the financial levers available to them and of their interdependent effect. When we talk about Economic Profit in a cross-discipline, cross-continent meeting, everyone who has experienced ‘Value Creation’ has the same understanding."